In Millions, Except Per Share Data, Fiscal Year Percentages and Ratios 21119 {a} 2013 2017 2916 2915 {b} Opera ting data: Net sales 3 16,3632 3 15,7494 3 15,619.3 3 16,563.] 3 17,639.3 Gross margin [15) (d) 5,755.5 5,435.5 5,555.5 5,545.5 5,557.5 Selling, general, and administrative expenses (d) 2,935.3 2,359.1 2,333.3 3,141.4 3,339.9 Operating prot {5) 2,515.5 2,419.5: 2,452.1 2,519.1 2,551.5 Net earnings attributable to General Mills 1,752.7 2,131.9 1,657.5 1,697.4 1,221.3 Advertising and media expense 6111.6 575.9 623.3 754.4 323.1 Research and development expense 221.9 219.1 213.2 222.1 229 .4 Average shares outstanding: Diluted 695.4 535.7 593.9 611.9 613.3 Earnings per share: Diluted 3 2.99 3 3.64 3 2.77 3 2.77 3 1.97 Adjusted diluted (c) (e) 5 3.22 5 3.1 1 5 5.55 5 2.52 5 2.55 Opera ting ratios: Gross margin as a percentage of net sales {d} 34.1 % 34.5% 35.6% 35.3% 33.3% Selling, general, and administrative expenses as a percentage of net sales {d} 17.4% 13.1% 13.5% 19.9% 19.2% Operating prot as a percentage of net sales {d} 14.9% 15.4% 16.9% 16.4% 1 1.3% Adjusted operating prot as a percentage of net sales (a) {d} {e} 15.11% 15.5% 15.5% 15.5% 15.5% Effective income tax rate 17.7% 2.7% 23.3% 31.4% 33.3% Balance sheet data: Land, buildings, and equipment 3 3,737.2 3 4,947.2 3 3,637.7 3 3,743.6 3 3,733.3 Total assets 39,111.2 39,624.9 21,312.6 21,712.3 21,332.9 Longterm debt, excluding current portion 1 1,624.3 12,663.7 7,642.9 7,95 7.7 7,575.3 Total debt (c) 14,499.9 15,313.6 9,431.7 3,439.9 9,191.5 Cash ow data: Net cash provided 113,-r operating activities (1} 3 2,397.9 3 2,341.9 3 2,415.2 3 2,764.2 3 2,643.5 Capital expenditures 537.6 622.7 634.4 729.3 712.4 Free cash ow (c) 2,269.4 2,213.3 1,739.3 2,934.9 1,936.1 Share data: Cash dividends common share 3 1.96 3 1.96 3 1.92 3 1.73 3 1.67 In Millions, Except Per Share Data, Percentages and Ratios 2020 [a] Operating data: Net sales 5 12,626.6 Gross margin [b] [d] 6,129.9 Selling, general, and administrative expenses [d] 3,151.6 Operating prot {d} 2,953.9 Net earnings attributable to IGeneral Mills 2,181.2 Advertising and media expense 691.8 Research and development expense 224.4 Average shares outstanding: Diluted 613.3 Earnings per share: Diluted 5 3.56 Adjusted diluted [b] [e] 5 3.61 Operating ratios: Gross margin as a percentage of net sales (d) 34.8% Selling, general, and administrative expenses as a percentage of net sales (d) 12.9% Operating prot as a percentage of net sales (d) 16.8% Adjusted operating prot as a percentage of net sales {13} (c) (d) 12.3% Effective income tax rate 18.5% Balance sheet data: Land, buildings, and equipment 8 3,580.6 Total assets 30,806.2 Longterm debt, excluding current portion 10,929.0 Total debt (1:) 13,5395 Cash ow data: Net cash provided by operating activities {e} 8 3,626.2 Capital expenditures 460.8 Free cash ow [b] 3,215.4 Share data: Cash dividends common share 8 1.96 2019 5 l6,865.2 5,256.8 2,93 5.8 2,515.9 1,252.2 601.6 221.9 605.4 5 2.90 5 3.22 34.1% 12.4% 14.9% 16.9% 12.2% 5 3,282.2 30,1 1 1.2 1 1 ,624.8 14,490.0 5 2,802.0 53 2.6 5 1.96 Fiscal Year 2018 5 15,2404 5,435.6 2,850.1 2,419.9 2,131.0 525.9 219.1 585.2 5 3.64 5 3.11 34.5% 18.1% 15.4% 16.6% 2.2% 5 4,042.2 30,624.0 12,668.2 15,818.6 5 2,841.0 2012 5 15,6198 5,562.8 2,888.8 2,492.1 1,652.5 623.8 2] 8 .2 598.0 5 2.22 5 3.08 35.6% 18.5% 16.0% 12.6% 28.8% 5 3,682.2 21,812.6 2,642.9 9,481.2 5 2,415.2 684.4 2016 5 16,563.1 5,843.3 3,141.4 2,219.1 1,692.4 254.4 222.1 611.9 5 2.22 5 2.92 35.3% 19.0% 16.4% 16.8% 31.4% 5 3,243.6 21,212.3 2,052.2 8,430.9 5 2,264.2 229.3 Consolidated Balance Sheets GENERAL MILLS, INC. AND SUBSEJIARIES (In Millions, Except Par Value) May 26, May 27, ASSETS Current assets: Cash and cash equivalents $ 450.0 .1. 399.0 Receivables 1,679.7 1,684.2 Inventories 1,559.3 1,642.2 Prepaid expenses and other current assets A A Total current assets 4,186.5 4,123.7 Land, buildings, and equipment 3,787.2 4,047.2 Goodwill 13,995.8 14,065.0 Other intangible assets 7,166.8 7,445.1 Other assets 974.9 943.0 Total assets 15 30,1 11.2 $ 30,6240 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 2,854.1 $ 2,746.2 Current portion of long-term debt 1,396.5 1,600.1 Notes payable 1,468.7 1,549.8 Other current liabilities w w Total current liabilities 7,087.1 7,341.9 Long-tenn debt 11,624.8 12,668.7 Deferred income taxes 2,031.0 2,003.8 Other liabilities 1,448.9 1,341 .0 Total liabilities 22,191.8 23,355.4 Redeemable interest 551.7 776.2 Stockholders' equity: Common stock, 754.6 shares issued, $0.10 par value 75.5 75.5 Additional paid-in capital 1,386.7 1,202.5 Retained earnings l4,996.7 14,45 9.6 Common stock in treasury, at cost, shares of 152.7 and 161.5 (6,779.0) (7,167.5) Accumulated other comprehensive loss {2,625.4} (2,429.0) Total stockholders' equity 7,054.5 6,141.1 Noncontrolling interests 313.2 35 1 .3 Total equity 7,367.7 6,492.4 Total liabilities and equity $ 30,111.2 $ 30,6240 n - . . I'IdIf- Consolidated Balance Sheets GENERAL MILLS, INC. AND SUBSIDIARIES [In Millions, Except Par Value) ASSETS Current assets: lCash and cash equivalents Receivables Inventories Prepaid expenses and other current assets Total current assets Land, buildings, and equipment Goodwill Other intangible assets Other assets Total assets LIABILITIES AND EQUITY Current liabilities: Accounts payable Current portion of long-term debt Notes payable Other current liabilities Total current liabilities Long-term debt Deferred income taxes Other liabilities Total liabilities Redeemable interest Stockholders' equity: Conunon stock, 254.6 shares issued, $8.18 par value Additional paid-in capital Retained earnings Conunon stock in treasury, at cost, shares of 144.8 and 152.2 Accumulated other comprehensive loss Total stockholders\" equityr Noncontrolling interests Total equity Total liabilities and equity See accompanying notes to consolidated nancial statements. May 31, May 26, 2828 2819 $ 1,622.8 8 458.8 1,615.1 1,629.2 1,426.3 1,5 59.3 482.1 492.5 5,121.3 4,186.5 3,588.6 3,28 2.2 13,923.2 13,995.8 2,895.8 2,166.8 1,885.8 924.9 3 38,8862 8 38,1 11.2 $ 3.2 42.2 $ 2.8 54.1 2,331.5 1,396.5 229.8 1,468.2 1,633.3 1,362.8 2,491.5 2,88 2.1 18,929.8 1 1,624.8 1,942.1 2,831.8 1,545.8 1,448.9 21,912.6 22,191.8 544.6 551.2 25.5 25.5 1,348.6 1,386.2 15,982.1 14,996.2 {6,433.3} (6,229.8) {2,914.4} {2,625.4} 8,858.5 2,8 54.5 291.8 313.2 8,349.5 2,362.2 $ 38,886.2 8 38,1 11.2 Baker College ACC 1020 Principles of Accounting I NOTES: EYK 14-5 -- General Mills to calculate averages use ((current year balance + prior year balance) / 2) round percentages to 1 decimal place; round other answers to 2 decimal places insert the formula here FY 2019 FY 2020 Gross profit percentage Return on sales Asset turnover Return on assets Return on common stockholders' equity Current ratio Quick ratio Operating cash flow to current liabilities ratio Accounts receivable turnover Average collection period Inventory turnover Days' sales in inventory Debt to equity ratio Times interest earned Operating cash flow to capital expenditures ratio Earnings per share Price-earnings ratio Dividend yield Dividend payout ratio Analysis\fConsolidated Statements of Cash Flows GENERAL MILLS, INC. AND SUBSDJIARIES (In Millions) lCash Flows - Operating Activities Net earnings, including earnings attributable to redeemable and noncontrolling interests Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization After-tax earnings fromjoint ventures Distributions of earnings from joint ventures Stock- based compensation Deferred income taxes Pension and other postretirement benet plan contributions Pension and other postretirement benet plan costs Divestitures loss Restructuring, impairment, and other exit costs Changes in current assets and liabilities, excluding the effects of acquisitions and divestitures Other, net Net cash provided by operating activities Cash Flows - Investing Activities Purchases of land, buildings, and equipment Acquisition, net of cash acquired Investments in afliates, net Proceeds from disposal of land, buildings, and equipment Proceeds from divestitures Exchangeable note Other, net Net cash used by investing activities lCash Flows - Financing Activities Change in notes payable Issuance of long-term debt Payment of long-term debt Proceeds from common stock issued on exercised options Proceeds from common stock issued Purchases of common stock for treasury Dividends paid Investments in redeemable interest Distributions to noncontrolling and redeemable interest holders Other, net Net cash provided (used) by financing activities Effect of exchange rate changes on cash and cash equivalents Increase (decrease) in cash and cash equivalents lCash and cash equivalents - beginning of year lCash and cash equivalents - end of year lCash Flow from Changes in Current Assets and Liabilities, excluding the effects of acquisitions and divestitures: Receivables Inventories Prepaid expenses and other current assets Accounts payable Other current liabilities Changes in current assets and liabilities Fiscal Year 2019 2013 2012 $ 1,236.2 5 2,163.0 5 1,201.1 620.1 613.3 603.6 (22.0) (34.2) (35.0) 36.2 113.2 25.6 34.9 22.0 95.2 93.5 (504.3) 133.9 (23.3) (31.3) (45.4) 6.1 4.6 35.2 30.0 13.5 235.2 126.0 112.0 (2.5) 542.1 (194.2) (22.9) (132.9) (36.3) 2,302.0 2,341.0 2,415.2 (532.6) (622.2) (634.4) (3,035.3) - 0.1 (12.3) 3.3 14.3 1.4 4.2 26.4 12.5 13.0 (59.2) (11.0) (0.5) (556.5) (3,635.4) (646.9) (66.3) 322.5 962.4 339.1 6,550.0 1,022.1 (1,493.3) (600.1) (1,000.0) 241.4 99.3 112.6 969.9 - (1.1) (601.6) (1,651.5) (1,131.2) (1,139.2) (1,135.1) 55.2 - - (33.5) (51.3) (61.0) (31.2) (103.0) (46.9) (2,126.4) 5,445.5 (1,242.4) (23.1) 31.3 (13.5) 51.0 (362.1) 2.4 399.0 266.1 263.2 s 450.0 3 399.0 3 266.1 s (42.2) $ (122.2) 3 (69.2) 53.2 15.6 (61.5) (114.3) (10.2) 16.6 162.4 525.3 99.5 (66.6) 34.6 (129.6) s (2.5) $ 542.1 3 (194.2) Consolidated Statements of Cash Flows GENERAL MILLS, INC. AND SUBSIDIARIES [In Millions) Fiscal Year 2020 2019 2018 Cash Flows - Operating Activities Net earnings, including earnings attributable to redeemable and noncontrolling interests 8 2,210.8 8 1,?86.2 S 2,163.0 Adjustments to reconcile net earnings to net cash provided by operating actiyities: Depreciation and amortization 594.? 620.1 618.8 After-tax earnings from joint ventures (91.1) (?2.0] (84.?] Distributions of earnings from joint ventures 76.5 86.? 113.2 Stockbased compensation 94.9 84.9 ??.0 Deferred income taxes (29.6) 93.5 [504.3] Pension and other postretirement benet plan contributions (31.1) (28.8] (31.8] Pension and other postretirement benet plan costs (32.3) 6.1 4.6 Divestitures loss - 30.0 - Restructuring, impairment, and other exit costs 43.6 23 5.? 126.0 Changes in current assets and liabilities, excluding the effects of acquisitions and divestitures 793.9 {?.5] 542.1 Other, net 45.9 (25.9] [132.9] Net cash provided by operating activities 3,676.2 2,80?.0 2,841.0 Cash Flows - Investing Actitities Purchases of land, buildings, and equipment (460.8) [53?.6] [622?] Acquisition, net of cash acquired - - (8,03 5.8] Investments in afliates, net (48.0) 0.1 (1?.3] Proceeds from disposal of land, buildings, and equipment 1.? 14.3 1.4 Proceeds from divestitures - 26.4 - Other, net 20.9 (59.5] (1 1.0) Net cash used by investing activities (486.2) [556.5] [8,685.4] Cash Flows - Financing Activities Change in notes payable (1,158.6) (66.3] 32?.5 Issuance of long-term debt 1,638.1 339.1 6,550.0 Payment of long-term debt (1,396.?) [1,493.8] [600.1] Proceeds from common stock issued on exercised options 263.4 241.4 99.3 Proceeds from common stock issued - - 969.9 Purchases of common stock for treasury (3.4) [1.1] [601.6] Dividends paid (1,195.3) [1,131.5] (1,139.?) Investments in redeemable interest - 55.? - Distributions to noncontrolling and redeemable interest holders (72.5) (38.5] (51.8] Other, net (16.9) (31.2] [108.0] Net cash {used} provided by nancing activities (1,941.5) [2,1?6.4] 5,445.5 Effect of exchange rate changes on cash and cash equivalents (211.?) (23.1] 31.8 Increase (decrease) in cash and cash equivalents 1,22?.8 51.0 [36?.1] Cash and cash equivalents beginning of year 450.0 399.0 ?66.1 Cash and cash equivalents end of year 8 l,6'??.8 $ 450.0 '3 399.0 Cash DW from changes in currerrt assets and liabilities, excluding the effects of acquisitions and divestitures: Receivables S 3?.9 $ (42.?) S [122?] Inventories 103.1 5 3.? 15.6 Prepaid expenses and other current assets 94.2 [114.3] (10.?] Accounts payable 392.5 162.4 5?5.3 Other current liabilities 166.2 (66.6] 84.6 Changes in current assets and liabilities 8 793.9 8 {?.5] $ 542.] See accompanying notes to consolidated nancial statements